African Foundries Limited has been upgraded by DataPro, the Technology-Driven Credit Rating Agency (CRA) in its latest report upgraded the long-term rating, with a Stable Outlook for the year 2021/2022.

The “A+” indicates Low Risk. It shows Very Good Financial Strength, Operating Performance and Business Profile when compared to the standard established by DataPro.

“African Foundries Limited in our opinion, has a strong ability to meet its ongoing obligations. DataPro Rating Committee approved the Rating after assessment of the Company’s Financial Performance, Corporate Governance & Risk Management, Regulatory Environment, Risk Factors and Future Outlook of its current healthy profile in the medium to long-term period.

“The Company continues to enjoy wide market share and increased revenue underpinned by steady upgrade of operating capacity. Revenue growth trend of the Company gained traction during the year under review. Total Earnings went up by 106% from ₦59.8b (Yr.20) to ₦123b (Yr.21).

“Total Liabilities comprised of Current and Non-Current Liabilities. It decreased by 22% from ₦71.7b (Yr.20) to ₦56b (Yr.21). This was largely due to a decline in Current Liabilities by 33% from ₦58.5b (Yr.20) to ₦39.3b (Yr.21),” DataPro said.

It added that African Foundries’ rating is because of their strong revenue base and good profitability.

“The Rating of African Foundries Limited is supported by its strong Revenue Profile, Good Profitability, Good Liquidity and Experienced Management team.”

The Rating carries a maximum shelf life of 12 calendar months, in line with International Best Practice and is therefore not an offer to trade in securities nor a substitute for the user’s judgement. It is meant for reference purposes.